Question: Montana Grill has computed the net present value for capital expenditures for the Billings and Great Falls locations using the net present value method. Relevant

Montana Grill has computed the net present value for capital expenditures for the Billings and Great Falls locations using the net present value method. Relevant data related to the computation are as follows:

Billings Great Falls
Total present value of net cash flow $182,360 $232,960
Amount to be invested 188,000 224,000

a. Determine the present value index for each proposal. Round to two decimal places.

Present Value Index
Billings Location

fill in the blank 1
Great Falls Location

fill in the blank 2

b. If Montana Grill can fund only one location, which location should be funded?

Great FallsBillingsGreat Falls

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